A review by Arizona-based Mintec has boosted proven and probable reserves at European Minerals‘ (EPMu-T) Varvarinskoye gold-copper deposit in northern Kazakhstan by 73%.
Based on a gold price of US$350 per oz., a US80-per-lb. copper price, and recently updated metallurgical work, Mintec pegs proven and probable reserves at 49.5 million tonnes running 1.42 grams gold per tonne. Of that, 14.2 million tonnes represent gold-copper ores running 1.91 grams gold and 0.87% copper. Some 29.4 million tonnes of “gold ore” grades 1.31 grams gold. Mintec says the material lacks economically recoverable copper, making it amenable to simple direct cyanide leaching. Another 5.9 million tonnes of stockpiled material runs 0.6 grams gold.
Mintec’s review also included a pit optimization program based on a feasibility study completed by Bateman Engineering in 1998. Mintec’s plan calls for the deposit to be exploited via six, closely spaced open pits within the 3-sq.-km mining licence. One of the pits contains some 63% of the proven and probable reserves. Mintec’s proposed pits reduce the overall stripping ratio to 4.2 to 1 from 5 to 1 under the Bateman study.
According to European Minerals, Varvarinskoye’s gold-copper ores can be treated by either bioleach technology or conventional flotation (as under Bateman’s plan). Initial results suggest recoveries of 92.5% for gold and 80% for copper. The company is collecting a 12-tonne ore sample to confirm the results. Optimization test work will begin in the coming months.
Applied to the mineable reserves outlined under the Bateman study, the new recovery figures suggest an operation that could annually produce 103,000 oz. of gold and 18.7 million lbs. of copper over 11 years at a cash cost averaging US$65 per oz. over the first 4 years. The project boasts an internal rate of return of 21%, and a net present value (at a zero discount rate) of US$146 million.
Next, Mintec will tackle detailed mine scheduling and reserve studies for production planning.
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